AIR - Air NZ.

[BC_Doc]

Pretty hot competition for NZ domestic flights. Just secured 6 air NZ flights AUK-WEL return for $39 each

http://www.stuff.co.nz/business/7910...mouth-schedule

[Zaphod]

Pretty hot competition for NZ domestic flights. Just secured 6 air NZ flights AUK-WEL return for $39 each

http://www.stuff.co.nz/business/7910...mouth-schedule

The key issue appears to be aircraft utilisation subsequent to providing the NPL/WLG sectors, due to intense competition on the AKL sector by Jetstar. The way the article is written makes it seem as though those wishing to travel between WLG and NPL may have to transit in AKL now, but that's not the case.

Still, it's interesting to see what effect Jetstar are having on domestic services and the effects on sectors not yet directly served by them.

[BC_Doc]

The key issue appears to be aircraft utilisation subsequent to providing the NPL/WLG sectors, due to intense competition on the AKL sector by Jetstar. The way the article is written makes it seem as though those wishing to travel between WLG and NPL may have to transit in AKL now, but that's not the case.

Still, it's interesting to see what effect Jetstar are having on domestic services and the effects on sectors not yet directly served by them.

Definately will be interesting to see. Will also be interesting to look at the cost comparison between WLG-NPL direct by air NZ and the WLG-ALK-NPL route operated by Jetstar. I guess this particular example route was used to illustrate the dynamic domestic market evolving before our eyes in response to increased competition. How the market responds to these headwinds (whether just perceived or in reality)? cant say for sure... Judging by the reaction to Qantas's latest news...... Could be quite 'reactive'......

[Beagle]

If you read back in the thread you'll see that I've been calling the relative SP's of QAN and AIR being so disjointed as being quite strange. Based on fundamentals (EPS, growth and outlook) I've made the case that they're worth about the same, if anything AIR is probably worth a little bit more because its growing faster. QAN's SP fall is as much about some reality coming back into the SP as anything else IMO.

Australian analysts are way too bullish on QAN's prospects and N.Z. analysts too bearish. Definitely more competition and fares are cheaper but fuel prices are still dirt cheap by historical standards and the current PE of less than 5 already more than adequately factors in the looming headwinds. Happy to hold for the big dividends in the years ahead.

[workingdad]

Spot X sounds ideal I had some great luck in coromandel over easter.

What are the chances of that happening.... Perhaps the distraction of the big moochers will be enough to help avoid pulling anchor and heading to a reception area for a quick look on the sly haha.

I don't do much work at present but had a situation that needed my attention, just finished now and see it lost another 2c . Will look at buying back in tomorrow with the benefit of seeing how the US goes overnight. I am not keen to get caught up in a long term position but wonder if AIR still has some good news to warrant a higher SP than $2.86 and potential for a quick turnaround.

Looks like I missed the boat, but the buy order in but it never quite got there and then climbing ever since.... oh well, will keep an eye on it for another opportunity down the line.

[winner69]

Pretty robust numbers in the monthly report

Things still on track i reckon

[Beagle]

Good solid stat's there, load factors about average, expansion of RPK's in line with the rate of robust tourism growth...AIR getting its "fare" share of the strong inbound and outbound tourism growth and yields holding up well considering the dirt cheap cost of oil. As you say Winner, business as usual. Most brokers have their stake in VAH as worth next nothing in their DCF models which average $3.26 so I'd expect a good jump if a sale is announced at market price or above, especially if such announcement comes in tandem with news of a special dividend / share buy-back or both.

BUT... then there's this https://nzx.com/companies/AIR/announcements/281175
More decks being built by AIR senior management...as if there core salaries aren't already very rewarding...

[mikeybycrikey]

BUT... then there's this https://nzx.com/companies/AIR/announcements/281175
More decks being built by AIR senior management...as if there core salaries aren't already very rewarding...

These announcements don't really ring any alarm bells for me at all. Usually with an option scheme, the recipient would sell a number of the shares to pay for exercising the options, although they are seliing a little more than that.

I had not read up about the long and short term incentive programs until now. Options don't seem to be part of the package any longer, having been replaced by "performance rights", which are based on the share price beating a 50:50 index of NZX ALL Gross and Bloomberg world airline index. Should be easy enough to beat that index in a good year though (should possibly be higher of NZX and Airline index rather than 50:50 weighting)

Seems interesting that the CEO needs to keep a shareholding equal to 55% of his base salary with other senior execs needing to hold between 40% and 20% of salary depending on seniority.

[skid]

Good solid stat's there, load factors about average, expansion of RPK's in line with the rate of robust tourism growth...AIR getting its "fare" share of the strong inbound and outbound tourism growth and yields holding up well considering the dirt cheap cost of oil. As you say Winner, business as usual. Most brokers have their stake in VAH as worth next nothing in their DCF models which average $3.26 so I'd expect a good jump if a sale is announced at market price or above, especially if such announcement comes in tandem with news of a special dividend / share buy-back or both.

BUT... then there's this https://nzx.com/companies/AIR/announcements/281175
More decks being built by AIR senior management...as if there core salaries aren't already very rewarding...

And will read back you will see skids ''gutometer'' was spot on--dont be sidetracked by facts and figures...but wait theres more...

[Anna Naum]

Winner, time to get the glasses out. Yield was terrible, sure in part maybe due to World Cup (Cricket) last year but either way SP is heading South.

This game is over, the plane (train) has left the station.

Pretty robust numbers in the monthly report

Things still on track i reckon